In general, if a de facto liquidation is deemed to occur, the tax consequences are substantially the same as if the company had formally
liquidated.
A bankrupt company shall be
liquidated according to the procedure laid down in the Enterprise Bankruptcy Law.
This article reviews the application of a
liquidated damages clause to an employment restrictive covenant agreement and emphasizes how practitioners can draft enforceable clauses for their business clients' protection.
The Arkansas general rule pertaining to
liquidated damages is that an agreement for
liquidated damages in advance of the breach of contract will be enforced if the amount is
A "time is of the essence clause"--In contracts where the
liquidated damages clause is invalid, the courts will allow an owner to invoke this clause to recover damages, provided the property owner can demonstrate an accurate calculation of consequential damages.
Liquidated damages are a predetermined amount of money that the parties to a contract agree will be awarded to one or both parties if there is a breach of contract.
Using
liquidated home equity for entry fees delivers another significant benefit for both the consumer and the sponsor--legal tax avoidance.
Trinity fared no better on the
liquidated damages issue.
The appellate court ruled that not only was the restrictive covenant enforceable but so was the
liquidated damages provision.
Since the Tax Reform Act of 1986 (TRA 86) repealed the General Utilities doctrine, it has become more attractive to retain a
liquidated corporation as a personal holding company (PHC).
These are the damages which are the so-called "difficult or impossible damages to determine" for which the remedy of
liquidated damages is particularly suited.
As an alternative or supplement to a restrictive covenant, physician executives should consider the use of a
liquidated damage provision.
